FTA is a federally registered investment advisor and serves as the
Funds' investment advisor. FTA and its affiliate First Trust Portfolios
L.P. ("FTP"), a FINRA registered broker-dealer, are privately-held
companies that provide a variety of investment services. FTA has
collective assets under management or supervision of approximately $126
billion as of June 30, 2018 through unit investment trusts,
exchange-traded funds, closed-end funds, mutual funds and separate
managed accounts. FTA is the supervisor of the First Trust unit
investment trusts, while FTP is the sponsor. FTP is also a distributor
of mutual fund shares and exchange-traded fund creation units. FTA and
FTP are based in Wheaton, Illinois.

You should consider the investment objectives, risks, charges and
expenses of a Fund before investing. Prospectuses for the Funds contain
this and other important information and are available free of charge by
calling toll-free at 1-800-621-1675 or visiting www.ftportfolios.com.
A prospectus should be read carefully before investing.

Past performance is no assurance of future results. Investment return
and market value of an investment in a Fund will fluctuate. Shares, when
sold, may be worth more or less than their original cost.

Principal Risk Factors: A Fund's shares will change in value, and you
could lose money by investing in a Fund. An investment in a Fund is not
a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency. There
can be no assurance that a Fund's investment objectives will be
achieved. An investment in a Fund involves risks similar to those of
investing in any portfolio of equity securities traded on exchanges. The
risks of investing in each Fund are spelled out in its prospectus,
shareholder report, and other regulatory filings.

Investors buying or selling Fund shares on the secondary market may
incur customary brokerage commissions. Investors who sell Fund shares
may receive less than the share's net asset value. Shares may be sold
throughout the day on the exchange through any brokerage account.
However, unlike mutual funds, shares may only be redeemed directly from
the Fund by authorized participants, in very large creation/redemption
units. If the Fund's authorized participants are unable to proceed with
creation/redemption orders and no other authorized participant is able
to step forward to create or redeem, Fund shares may trade at a discount
to the Fund's net asset value and possibly face delisting.

One of the principal risks of investing in a Fund is market risk. Market
risk is the risk that a particular security owned by a Fund, Fund shares
or securities in general may fall in value.

An actively managed ETF is subject to management risk because it is an
actively managed portfolio. In managing such a Fund's investment
portfolio, the portfolio managers, management teams, advisor or
sub-advisor, will apply investment techniques and risk analyses that may
not have the desired result.

First Trust Municipal CEF Income Opportunity ETF (MCEF) and First Trust
CEF Income Opportunity ETF (FCEF) invest in closed-end funds (“CEFs”).
Because the shares of CEFs cannot be redeemed upon demand, shares of
many CEFs will trade on exchanges at market prices rather than net asset
value, which may cause the shares to trade at a price greater than NAV
(premium) or less than NAV (discount). There can be no assurance that
the market discount on shares of any CEF purchased by MCEF or FCEF will
ever decrease or when MCEF or FCEF seeks to sell shares of a CEF it can
receive the NAV for those shares. MCEF and FCEF may also be exposed to
higher volatility in the market due to the indirect use of leverage
through their investment in CEFs. CEFs may issue senior securities in an
attempt to enhance returns.

An underlying CEF that is concentrated in securities of companies in a
certain sector or industry involves additional risks, including limited
diversification. An investment in an underlying CEF concentrated in a
single country or region may be subject to greater risks of adverse
events and may experience greater volatility than a Fund that is more
broadly diversified geographically.

An underlying CEF may invest in small capitalization and
mid-capitalization companies. Such companies may experience greater
price volatility than larger, more established companies.

An investment in an underlying CEF containing securities of non-U.S.
issuers is subject to additional risks, including currency fluctuations,
political risks, withholding, the lack of adequate financial
information, and exchange control restrictions impacting non-U.S.
issuers. These risks may be heightened for securities of companies
located in, or with significant operations in, emerging market
countries. An underlying CEF may invest in depositary receipts which may
be less liquid than the underlying shares in their primary trading
market.

Certain underlying CEFs are subject to credit risk, call risk, income
risk, interest rate risk, prepayment risk and zero coupon bond risk.
Credit risk is the risk that an issuer of a security will be unable or
unwilling to make dividend, interest and/or principal payments when due
and that the value of a security may decline as a result. Credit risk is
heightened for floating-rate loans and high-yield securities. Call risk
is the risk that if an issuer calls higher-yielding debt instruments
held by a Fund, performance could be adversely impacted. Income risk is
the risk that income from a Fund's fixed-income investments could
decline during periods of falling interest rates. Interest rate risk is
the risk that the value of the fixed-income securities in a Fund will
decline because of rising market interest rates. Prepayment risk is the
risk that during periods of falling interest rates, an issuer may
exercise its right to pay principal on an obligation earlier than
expected. This may result in a decline in a Fund's income. Zero coupon
bond risk is the risk that zero coupon bonds may be highly volatile as
interest rates rise or fall because they do not pay interest on a
current basis.

Senior floating-rate loans are usually rated below investment grade but
may also be unrated. As a result, the risks associated with these loans
are similar to the risks of high-yield fixed-income instruments.
High-yield securities, or "junk" bonds, are subject to greater market
fluctuations and risk of loss than securities with higher ratings, and
therefore, may be highly speculative. These securities are issued by
companies that may have limited operating history, narrowly focused
operations, and/or other impediments to the timely payment of periodic
interest and principal at maturity. The market for high-yield securities
is smaller and less liquid than that for investment grade securities.

Certain of the fixed-income securities held by certain underlying funds
may not have the benefit of covenants which could reduce the ability of
the issuer to meet its payment obligations and might result in increased
credit risk.

Income from municipal bonds held by an underlying CEF could be declared
taxable because of, among other things, unfavorable changes in tax laws,
adverse interpretations by the Internal Revenue Service or state tax
authorities, or noncompliant conduct of a bond issuer.

Master limited partnerships (“MLPs”) are subject to certain risks,
including price and supply fluctuations caused by international
politics, energy conservation, taxes, price controls, and other
regulatory policies of various governments. In addition, there is the
risk that an MLP could be taxed as a corporation, resulting in decreased
returns from such MLP.

The use of futures, options, and other derivatives can lead to losses
because of adverse movements in the price or value of the underlying
asset, index or rate, which may be magnified by certain features of the
derivatives. These risks are heightened when an underlying CEF's
portfolio managers use derivatives to enhance an underlying CEF's return
or as a substitute for a position or security, rather than solely to
hedge (or offset) the risk of a position or security held by an
underlying CEF.

A Fund may effect a portion of creations and redemptions for cash,
rather than in-kind securities. As a result, an investment in a Fund may
be less tax-efficient than an investment in an exchange-traded fund that
effects its creations and redemptions for in-kind securities.

A Fund’s investment in CEFs and ETFs involves additional expenses that
would not be present in a direct investment in the underlying funds. In
addition, a Fund's investment performance and risks may be related to
the investment and performance of the underlying funds.

Income from the Funds may be subject to the federal alternative minimum
income tax.

Certain underlying CEFs may invest in distressed securities and many
distressed securities are illiquid or trade in low volumes and thus may
be more difficult to value. Illiquid securities involve the risk that
the securities will not be able to be sold at the time desired by an
underlying CEF or at prices approximately the value at which an
underlying CEF is carrying the securities on its books.

The Funds are classified as "non-diversified" and may invest a
relatively high percentage of its assets in a limited number of issuers.
As a result, the Funds may be more susceptible to a single adverse
economic or regulatory occurrence affecting one or more of these
issuers, experience increased volatility and be highly concentrated in
certain issuers.

The information presented is not intended to constitute an investment
recommendation for, or advice to, any specific person. By providing this
information, First Trust is not undertaking to give advice in any
fiduciary capacity within the meaning of ERISA and the Internal Revenue
Code. First Trust has no knowledge of and has not been provided any
information regarding any investor. Financial advisors must determine
whether particular investments are appropriate for their clients. First
Trust believes the financial advisor is a fiduciary, is capable of
evaluating investment risks independently and is responsible for
exercising independent judgment with respect to its retirement plan
clients.